CRDB BANK SETS 700BN/- FOR INDUSTRIAL DRIVE

CRDB Bank, one of the largest banks in the country, said on Wednesday it will increase the lending amount to industrial sector. The bank said it will raise the amount from the current 15 per cent to 20 per cent to 700bn/- by next year.

The bank’s Managing Director, Dr Charles Kimei, said the increase set to enable industrialists to borrow more in a bid to implement the industrialisation talk. Dr Kimei said to beef up the industry lending portfolio “we have borrowed 650bn/- from international lenders” at competitive rate.

“Our strong balance sheet and rating enable us to secure the loan that will lend in long term for between 8 to 10 years” Dr Kimei said during the launching of the bank's fifth branch and the largest in Dodoma. The amount, according Dr Kimei, was lent from IFC, the investment arm of World Bank, Africa Development Bank, SwedeFund and European Investment Bank.

President John Magufuli, who was the chief guest of the event, praised CRDB move to increase the industry lending saying it helps lifting people out of poverty and economic growth. “I am told out of the bank’s 3.5tri/- loans 1.1tri/- was directed to agriculture and industry,” Mr Magufuli said.

The president said if all privatised parastatals were operating like CRDB, “we could have made big strides on development. Unfortunately, many [parastatals] are not performing.” He also called for banks, now 58 in the country, to go to rural areas where there is big number of unbankable population.

“Most of the banks are in Dar es Salaam and other big cities and towns, you should go to the rural as well by that way you (banks) foster development,” President Magufuli said.

According to 2015 statistics 36.3 per cent of bank branches were in Dar es Salaam, followed by Arusha (7.1%), Mwanza (6.5%), Mbeya (5.4%) and Moshi (4.6%). The president said in 2014 the financial sector liquidity was 22.5tri/- which was very low to the nation need of 107tri/- that needed to finance the country development plan as per the second five years development plan of 2016/17.

Daily News